Sebi bars two entities over alleged cross-derivatives manipulation

India's markets regulator on Wednesday barred two entities over a "novel" cross-segment price manipulation involving stock derivatives, and ordered impounding of the alleged wrongful gains pending investigations.

Securities and Exchange Board of India alleged Prrsaar Sampada Private Limited and Chaubara Eats Private Limited generated gains of about 281 million rupees ($2.93 million) using sophisticated stock options and futures strategy.

Here are the key details:


SEBI alleged the entities intentionally took losses in stock futures by buying high and selling low to move prices and generate larger profits from opposite bets in related stock options.

The two trading firms allegedly manipulated predominantly the bottom 100 stocks by market capitalisation among the roughly 211 stocks, which SEBI said are easier to influence given lower capital requirement.

The watchdog said the firms' primary objective was not profits in futures but "higher economic benefit in options", describing the activity as a form of cross-segment price manipulation that distorted prices.

After NSE questioned trading by Prrsaar Sampada in February and March 2026, volumes in that account fell sharply, but similar activity allegedly migrated to related entity Chaubara Eats, SEBI said.